American insurance companies have invested around RM31 billion in Malaysia over the last 50 years, according to an economic impact survey published by the American Malaysian Chamber of Commerce. The survey highlights the contributions made by American insurance companies to the Malaysian economy.
The report reveals that around 36 percent of the investment by American insurance companies in Malaysia went to government bonds. While around 19 percent were invested in infrastructure investments, around 7 percent were invested in stock exchanges in the country.
The report also points out the importance of American insurance companies in increasing insurance coverage in Malaysia. Simultaneously, the companies have also created a total of around 2,500 jobs across the entire country.
According to the report, total gross salary paid by these American companies to its employees in Malaysia amounts to RM25 million in 2018.
Executive director at the American Malaysian Chamber of Commerce, Siobhan Das told the media, “Higher levels of insurance penetration over the coming years will be key to achieving the government’s Shared Prosperity Vision 2030.”
“Given the specific business model of the insurance industry, it can be easy to underestimate the major economic impact that the big insurance players can make to the national economy.”
According to Global Data, an UK-based data analytics and consulting company, Malaysia’s motor insurance market is expected to grow from RM8.2 billion in 2018 to RM9.7 billion in 2023, in terms of net earned premium.
The report highlighted that the motor insurance industry is one of the major contributors to the growth of the Malaysian general insurance industry.
Last month, local media houses in Malaysia also reported that medical insurance premiums may go up by 30 percent due to an increase in healthcare costs.